Jefferies raised the firm’s price target on Honeywell (HON) to $260 from $220 and keeps a Hold rating on the shares. A “flurry of strategic actions have been further stimulated” by Elliott’s $5B stake announcement, points out the analyst, who notes that the company announced that it will provide an update on the board’s strategic portfolio review along with Q4 EPS and said that a potential separation of its Aerospace segment is being considered. Spinning Aerospace Technologies “appears the most likely outcome,” but an asset sale is unlikely as the $15B revenue franchise is “too large” for a potential suitor, the analyst tells investors.
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